Senior Citizen Saving Scheme (SCSS) is a post office saving scheme for senior citizens above the age of 60 years. Applicants older than 55 years but less than 60 years can also open the Post Office Senior Citizen Saving Scheme if they have taken voluntary retirement or have retired on superannuation (subjected to terms and conditions). For amounts less than Rs. 1 lakh the payment can be done in cash. For amounts more than Rs. 1 lakh the payment can only be done via cheque.
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Let’s discuss the scheme in detail below.
A post office senior citizen saving scheme makes a good investment option for people who have retired as it offers an interest rate of 8.0% w.e.f January 01, 2023. Below are the important features of post office senior citizen savings scheme:
Post Office Senior Citizen Saving Scheme Maturity Period of SCSS: 5 years
Post Office Senior Citizen Saving Scheme Multiple Accounts: In SCSS a depositor/subscriber can have an individual account or a joint account with their spouse. The spouse should not necessarily be a senior citizen. The first depositor will be considered as the investor. And the maximum deposit limit in the joint account still remains at Rs. 15 lakhs (in the multiples of Rs. 1000) only. Though individuals can open multiple accounts the collective balance in all the accounts cannot exceed Rs. 15 lakhs.
Post Office Senior Citizen Scheme Nomination Facility: This Scheme allows the nomination facility while opening or after the opening of the account. The depositor can nominate any person by filling an application in Form C.
Post Office Senior Citizen Saving Scheme Account Transfer: The account is easily transferable from one post office to another.
Post Office Senior Citizen Scheme Premature Closure: This scheme permits premature closure after 1 year on deduction of 1.5% of the deposited amount and 1% of the deposited amount after 2 years. Once the scheme is matured, it can be further extended for three by applying within one year of maturity. In that case, the Senior citizen saving account can be closed without any deduction after the expiry of one year of the extension.
Post Office Senior Citizen Scheme Tax Benefit: The depositor can claim tax benefits under Section 80C of the Income Tax Act, 1961 on the deposited amount.
The scheme offers a steady source of income with one time investment of a fixed sum. However, the minimum limit of investment is Rs. 1000 and maximum is Rs.15 lakhs.
Minimum Age Criteria for Post Office Senior Citizen Scheme: 60 years
Special Age Criterion: 55 years to 60 years in case of voluntary retirement or superannuation. Provided the account is opened within a month of receiving retirement benefits and the amount shall not exceed the retirement benefits.
It is important to know that this scheme provides the option to deposit the funds into your account in a lump sum. As a result, an individual holding one account can also open multiple accounts under the scheme given that the total amount deposited does not exceed the maximum limit of Rs. 30 lakhs. However, opening more than one account in the same deposit branch is prohibited within the same calendar month.
The central government authorizes the interest rate on the post office senior citizen scheme. Currently, it is 8.0% per annum (from January 01 to March 31, 2023).
|Schemes||Rate of interest||Compounding Frequency|
|Post Office Savings Account||4.0%||Annually|
|1 Year Time Deposit||6.6%||Quarterly|
|2 Year Time Deposit||6.8%||Quarterly|
|3 Year Time Deposit||6.9%||Quarterly|
|5 Year Time Deposit||7.0%||Quarterly|
|5 Year Recurring Deposit Scheme||5.8%||Quarterly|
|Senior Citizen Savings Scheme||8.0%||Quarterly and Paid|
|Monthly Income Account||7.1%||Monthly and paid|
|National Savings Certificate (VIII Issue)||7.0%||Annually|
|Public Provident Fund Scheme||7.1%||Annually|
|Kisan Vikas Patra||7.2%||Annually|
|Sukanya Samriddhi Account Scheme||7.6%||Annually|
To make Investment in Post Office Senior Citizen Saving Scheme, the following documents need to be submitted by the applicants:-
Fill out the application form available at the Bank or Post office
Fill The Know Your Customer (KYC) form
Provide the Permanent Account Number (PAN) Card Number
Retirement Benefits’ Disbursal Date
Also, the Applicant’s Employer Certificate mentioning the retirement VRS or Superannuation needs to be submitted.
To make payment by cash the amount should be less than Rs. 1 lakh and if it is above Rs. 1 lakh then it is possible to pay by cheque. Submit all the documents that are mentioned above.
Carefully fill the SCSS Account Opening form while providing the nominee details. Also, the original identity proof is required for verification purposes. Finally, get a witness signature and complete the procedure to get started.
To automate the scheme, it is required to have a savings bank account and place a request for automatic transfer of Senior Citizen Scheme interest to the RD account through the depositor’s Post Office Savings Account.
Online payment facility is only available for Post Office RD account through ECS or Electronic Clearing Service. Also, one can get the payment done from an agent through the post office agent portal and he can make the payment online on the behalf of the depositor.
It is better to check with the post office branch to seek clarity regarding the Post Office Senior Citizen Scheme online payment.
Hope the above information proves to be helpful in case you want to open an SSCS Account in the Post office. Below are some of the frequently asked questions that you can refer to.
Past 10 Year annualised returns as on 01-12-2023
^Tax benefit are for Investments made up to Rs.2.5 L/ yr and are subject to change as per tax laws.
*All savings are provided by the insurer as per the IRDAI approved insurance plan.
Tax benefit is subject to changes in tax laws. Standard T&C Apply
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